The document provides a detailed 10-step checklist for accounts payable fiscal year-end close, emphasizing the importance of policies, procedures, and communication. It covers crucial aspects such as accruing expenses, recognizing expenses, roles during the close, internal controls, reconciliations, and reporting variances. The checklist aims to improve coordination and accountability in the financial close process and is supported by experts Chris Doxey and Christopher Jablonski.

1. Accounts Payable Fiscal
Year-End Close
A 10-Step Checklist
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2. Chris Doxey, CAPP, CCSA, CICA, CPC
Chris has held senior finance and controller positions at Digital Equipment
Corporation, Compaq Computer Corporation, Hewlett Packard, MCI, APEX Analytix,
and BSI Healthcare. She has a bachelor’s degree in English, a bachelor’s in
accounting, a master’s in business administration, and a graduate certificate in project
management. Chris is currently a management consultant providing best practices
solutions to her clients in the areas of compliance, auditing, internal controls, and fraud
prevention. She works with companies of all sizes – including Fortune 50 clients and
SMBs. Chris also serves as the Executive Director of the Controller Certification
Program for the IOFM.
Christopher Jablonski, Senior Content
Marketing Manager, Tradeshift
Chris is a senior content marketing manager at Tradeshift. He has 14 years of
business technology experience in analyst, journalism, and marketing roles. Twitter:
@cjablonski

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4. Agenda
• Introduction
• Your 10-Step Checklist
1. Policies and Procedures
2. Accrued Expenses
3. Properly Recognizing Expenses
4. Roles and Responsibilities During the Fiscal Close
5. The Review Process
6. Internal Controls
7. Reconciling Accounts
8. Reporting Variances
9. Journal Entries
10. Financial Close Metrics
• Closing Thoughts and Recommendations
• Q&A

5. Fiscal Year-End Close Tools

6. Fiscal Year-End Close Tools
Fiscal year-end close checklist
1. Financial Close Sample Schedule
2. AP Roles and Responsibilities
3. Corporate Journal Entries
4. Corporate Consolidation
5. Year-End Financial Close

7. Policies and Procedures

8. 1. Policies and Procedures
Implement standard policies and procedures for:
• Accounting
• Coordination
• Communication
• Checklists
Key Point:
Communication!

9. Accruing Expenses

10. 2. Accruing Expenses
At the close of each month, quarter, and fiscal year,
accrual procedures are needed to ensure that all
expenses related to that month are properly included in
the company’s financial statements.
Key Point:
Estimate accruals where possible!

11. Properly Recognizing Expenses

12. 3. Properly Recognizing Expenses
Record expenses in the period in which the goods or
services are received or used.
Record expenses as the corresponding revenues are
recorded.
Key Point:
Expenses follow the money!

13. Roles and Responsibilities
During the Fiscal Close

14. 4. Roles and Responsibilities During the Fiscal
Close
Define and communicate roles and responsibilities
during each fiscal close.
Key Point:
Be aware of organizational, process,
and system changes.

15. The Review Process

16. 5. The Review Process
Too many levels of review during the fiscal close can
slow down the process by creating “bottlenecks.”

17. Internal Controls

18. 6. Internal Controls
To ensure proper valuation of the company’s balance sheet at
fiscal year end, charge invoices in the fiscal year in which the
goods are received and services are performed.
Internal controls can help validate the accuracy of general ledger
accounts by performing ratio and trend analysis of account
balances.
Key Point:
Look for Anomalies!

19. Reconciling Accounts

20. 7. Reconciling Accounts
Research and explain significant balance fluctuations.
Ensure account reconciliations are appropriately
approved.
Key Point:
Don’t wait until the end of the fiscal year to
reconcile your Accounts Payable Clearing
Accounts and Debit Balances!

21. Reporting Variances

22. 8. Reporting Variances
• Variances should be aged and explained.
• Develop an action plan to address all variances.
• Ensure account reconciliations are appropriately approved.
Key Point:
Don’t wait until the end of the fiscal year to
reconcile your Accounts Payable Clearing
Accounts and Debit Balances!

23. Journal Entries

24. 9. Journal Entries
Make greater use of importing tools to upload
information into the accounting package.
Minimize the risk of duplicate and erroneous manual
entries.
Key Point:
Automate the journal entry process!

25. Financial Close Metrics

26. 10. Financial Close Metrics
1. Gross number of adjusting entries: Correct transaction errors -
their correction delays the closing process.
2. Review errors: Use the information to track down and correct
underlying problems that can be prevented during future
closing processes.
3. Completion times and ending balances:
• Cycle time to complete final accounts payable disbursement run
• Cycle time to complete accrual process
• Ending Clearing Account Balance
• Outstanding Debit Account Balance

27. Closing Thoughts and Recommendations
• Coordination
• Communication
• Checklists
• Focus on the basics
• Be accountable and focus on improving the fiscal close
throughout the year!

28. Chris Doxey, CAPP, CCSA, CICA, CPC
Subject Matter Expert and Management Consultant
chris@chrisdoxey.com
Christopher Jablonski
Senior Content Marketing Manager, Tradeshift
cja@tradeshift.com
Questions?
Let us know!

29. Accounts Payable Fiscal
Year-End Close
A 10-Step Checklist
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to follow up
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